Michael is nervous about meeting with the new prosecutor of his father's criminal case. Buster, meanwhile, is not finding success in his army training. Mostly because he can't climb a wall. Back at home, George-Michael reports that, despite studying with Ann, he only got a B- on his last math test. He thinks he might be distracted by how pretty she is. Michael decides to set his son up with an eye appointment to hopefully settle this Ann issue once and for all.
Tobias announces to Michael that he's heading off for the gym, which makes Lindsay paranoid. She isn't having any success in their open marriage competition and is worried that Tobias is ahead of her. Maeby, determined to get closer to Steve Holt, begins ordering unnecessary items – such as a Memories of Thanksgiving basket – in order to have Steve deliver them to the house as part of his job. But during this latest delivery, Steve and Lindsay see each other. Maeby is repulsed by her mother's attraction to the same 19-year old she's after.
Michael takes the new gift basket to his father in the attic. He isn't so sure he's ready to meet with the new prosecutor now that he knows his father is actually alive. Why'd he have to come back anyway? George Sr. says he came back only to see if Lucille is still his. If she's in love with Oscar, George Sr. will go away for good.
Michael meets with the new prosecutor, Wayne Jarvis. Wayne floats the idea that if Michael can hand over his father, he'll be granted immunity. Elsewhere, Buster tries to convince Gob to accompany him to boot camp, since Gob had always proven to be a great motivator for Buster. Mainly because he punched him frequently.
Michael set out to see if his mother and Oscar are really in love. And Lindsay decides to spend more time getting to know her daughter. By visiting her at school. And aggressively coming on to Steve Holt. Maeby sabotages that by later telling Steve that Lindsay is actually her transgendered father. Buster is still trying to convince Gob to motivate him, but Gob was so embarrassed by his poor interview with Wayne Jarvis earlier that he is completely without confidence.
Later, Michael reports to his father that Oscar is probably on his way out, so he should sit tight in the attic. At work, Michael gets a call from his son that his glasses were making him feel nauseous and disoriented. Michael cuts the call short to meet with Wayne Jarvis again. Wayne reveals that they tapped into the Bluth Company e-mail server and found satellite images of the Iraqi countryside. And he believes that Michael's father was building over WMD bunkers to hide them. George Sr. is guilty, says Wayne, and Michael can't protect him.
At home, Michael is going to relay Wayne's words to his father when Lindsay proudly announces that she's set up a lunch date with Steve Holt. Also that their mother claims to be finding love in the oddest places in the model home. And earlier, we see that George Sr. watched through the vent as his wife made love to his brother. Michael heads up to the attic and finds his father missing once again.
Michael calls his mother to ask if she's seen George Sr. She says she hasn't and that his plan to drive Oscar away backfired because he was back in her penthouse. And they had just finished making love. Except it was George Sr., wearing a remarkably bad wig, that was in her penthouse. As "Oscar," George Sr. asks Lucille if she loves him, and when she responds in the affirmative, he takes off.
The photos that Wayne Jarvis obtained finally made their way to the public. And thanks to the Patriot Act, have been seen by several branches of government. Including the Army, which was beginning to ship out without Buster since he wasn't combat ready. In the 11th hour Gob, instilling great fear about weapons of mass destruction, inspires Buster to finally scale that wall.
At school, George-Michael tells Maeby that he got a C on his latest math test. Maeby wants to know if he's seen Lindsay, who was coming for lunch with Steve Holt. But upon overhearing Maeby tell George-Michael about her own crush on Steve Holt, Lindsay leaves the school ground, abandoning her dreams of Steve Holt.
And George Sr. returns to the attic, where his son is waiting for him. George tells Michael that he could turn him in for all he cared because he doesn't have love in his life anymore. Later that day, Michael has his meeting with Wayne Jarvis. Wayne threatens Michael with the Iraqi photos, but Barry Zuckerkorn, seeing the photos for the first time, realized that they were actually a close up of balls. Tobias's balls to be exact, which he inadvertently photographed and e-mailed to the company while playing around with the cell phone Gob had given him. Michael returns home a free man.
On the next Arrested Development...
Oscar returns to find a now distant Lucille, which was what attracted him to her in the first place; Lindsay reconciles with her daughter; and Tobias, traumatized by the public exposure, returns to an unfortunate quirk.